Zixin Pharmaceuticals' performance surged to 5.2 billion inventory shadow financial fraud doubts

yesterday, Zixin Pharmaceuticals closed down 1.12 per cent at 4.43 yuan.
third-quarter results show that Zixin Pharmaceuticals' net profit upward cash flow downwards. In the first three quarters of 2018, Zixin Pharmaceuticals achieved operating income of RMB1,278 million, up 70.25% YoY; net profit attributable to shareholders of listed companies was RMB329 million, up 107.23% YoY; and net cash flow from operating activities was RMB267 million, down 85.65% YoY.
the end of the third quarter, Zixin Pharmaceuticals had 5,223 million yuan in inventory and 1,086 million yuan in accounts receivable.
Zixin Pharmaceuticals is extremely tight in terms of capital. As of the end of the third quarter, Zixin Pharmaceutical's monetary capital was 24.7348 million yuan, while short-term borrowings amounted to 2,655 million yuan, with non-current liabilities due in one year of 285 million yuan.
China Economic Network reporter reviewed the announcement found that the semi-annual report Zixin Pharmaceuticals in the top ten circulation shareholders, a total of six major shareholders in the third quarter to reduce their holdings, exit the top ten circulation shareholders.
Among them, Huaxin International Trust Co., Ltd. - Huaxin Trust Value Return No. 2 Securities Investment Pooled Fund Trust Plan held 16.262 million shares at the end of the first half of the year, accounting for 1.586 percent of the outstanding shares, in the third quarter has been withdrawn from the top ten outstanding shareholders.
Qiu Yongming held 6.946 million shares at the end of the first half of the year, accounting for 0.678 percent of the outstanding shares, and had withdrawn from the top 10 outstanding shareholders in the third quarter.
Xiangzhuqin held 6.1491 million shares at the end of the first half of the year, accounting for 0.600% of the outstanding shares, and had withdrawn from the top ten outstanding shareholders in the third quarter.
Feng Zhuang held 5.9352 million shares at the end of the first half of the year, accounting for 0.579 percent of the outstanding shares, and in the third quarter has withdrawn from the top ten outstanding shareholders.
Huaxin International Trust Co., Ltd. - Huaxin Trust Value Return No. 67 Securities Investment Pooled Fund Trust Plan held 4.3107 million shares at the end of the first half of the year, accounting for 0.420% of the outstanding shares, in the third quarter has been withdrawn from the top ten outstanding shareholders.
Huang Meiling held 277.00 million shares at the end of the first half of the year, accounting for 0.270% of the outstanding shares, and had withdrawn from the top ten outstanding shareholders in the third quarter.
Zixin Pharmaceuticals is on its way to transfer its stake to state-owned companies. On August 31, Zixin Pharmaceuticals received a notice from the company's controlling shareholder, Dunhua Kangping Investment Co., Ltd. ("Kangping Company"), that Kangping intends to introduce state-owned background strategic investors for Zixin Pharmaceuticals in connection with the planning of equity transfer with the state-owned capital platform, and that the matter may involve changes in Zixin Pharmaceutical's controlling shareholders and actual controllers.
October 13, the company received a notice from Kangping Company, Kangping Company and Liuhe County Fengling Health Industrial Park Co., Ltd. (hereinafter referred to as "Fengling Da Health Co., Ltd." on October 12 jointly signed the Framework Cooperation Agreement, this agreement is an intentional agreement, the specific equity trading program and rights and obligations of the two parties to the final signed transaction documents.
Fengling Health Co., Ltd. is a wholly-owned subsidiary initiated by Jilin Jucai Industrial Co., Ltd. (hereinafter referred to as "Jucai Industrial"), the actual controller of Jucai Industrial is the Liuhe County Finance Bureau.
fengling health company was established just one day, it signed an equity agreement with Kangping company to transfer Zixin Pharmaceuticals. According to the announcement, Fengling Da Health Company was founded on October 11, 2018, with a registered capital of 200 million yuan.The main terms of the
agreement mainly include two schemes, the number of shares proposed in the proposed equity transaction in Option 1 is 20% of the total share capital of Zixin Pharmaceuticals, the voting rights of the entrusted agent Kangping Company (the actual control of Kangping Company), and the proposed price per share is Rmb15; the number of shares proposed for the proposed equity transaction in Option II is 5%-10% of Zixin Pharmaceuticals' total share capital, and the proposed price per share is RMB20 for the voting rights of the entrusted agent Kangping Company (the actual control of Kangping Company).
China Economic Network reporter noted that yesterday's close Zixin Pharmaceuticals share price of only 4.43 yuan, Liuhe County Finance Bureau gave the purchase price, no matter which option is outrageously high.
recently, Zixin Pharmaceuticals has come under regulatory attention for questioning financial fraud. At noon on October 11th, the management department of the small and medium-sized board company of Shenzhen Stock Exchange issued a letter of concern about Jilin Zixin Pharmaceutical Industry. Previously, some media questioned the authenticity of Zixin Pharmaceuticals profit doubts, concealment of related transactions, asset impairment preparation is not sufficient.
Zixin Pharmaceuticals on October 17 to reply to the Shenzhen Stock Exchange's concern letter, said that in addition to Dunhua Huayun Industry and Trade for Zixin Pharmaceutical related parties, several other customers questioned and Zixin Pharmaceuticals do not have a relationship or interest tilt relationship.
, Jilin Senggong is zixin Pharmaceuticals in the first half of 2018 ginseng product sales of the second largest customer. Although Zixin Pharmaceuticals said that there is no relationship with Jilin Ginseng, but the media inquiry found that Zixin Pharmaceutical Chairman Guo Chunlin is a director of Yanbian SpecialIty Industry Co., Ltd., and Yanbian SpecialIty's shareholder Jilin Qianjia Investment Co., Ltd. and Jilin Ginseng subsidiary Tonghua Jufeng Investment Co., Ltd. are also shareholders of Jilin Aibao Kang Health Co., Ltd. (China Economic Network)